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  Agriculture
 

The Kingdom of Saudi Arabia has made great progress in realizing the long-held objective of achieving self-sufficiency in food production. Saudi Arabia's agricultural development is now considered one of the major accomplishments of modern agriculture in the Middle East. The country's leaders have always encouraged the growth of the agricultural sector, not only for its role in food security, but also for its contribution to diversifying the economy away from oil. Today, the agricultural sector employs a significant number of people and utilizes the latest techniques to produce a variety of goods, stocking shelves in stores in Saudi Arabia and exporting excess supplies to countries across the globe. Agriculture's share of the Kingdom's gross domestic product (GDP) has climbed from just 1.3 percent in 1970 to well over 10 percent.

 

This agricultural success is all the more impressive considering the geography of the Kingdom. Saudi Arabia is a large country without permanent rivers, and less than two percent of its land surface is under cultivation. The Rub Al-Khali (Empty Quarter), the largest sand desert in the world, stretches across the southern part of the Kingdom. Overall, only an average of about four inches of rain falls annually in the country—one of the lowest rates in the world. At the same time, the Arabian Peninsula has always harbored fertile regions. The farmers of the Asir region in the southwest have long practiced rain-fed agriculture, raising maize, wheat, barley and an array of vegetables and fruit in their terraced fields. Verdant palm oases, such as Al-Qatif and Al-Hasa in the Eastern Province, have always enlivened the brown of the desert. In the provinces of Hail and Al-Qasim, long stretches of arable farmland yield grains and vegetables and are dotted today with chicken and dairy farms.

Water, of course, is the key to agriculture in Saudi Arabia. The Kingdom has successfully implemented a multifaceted program to provide the vast supplies of water necessary to achieve the spectacular growth of the agricultural sector. A network of dams has been built to trap and utilize precious seasonal floods. Vast underground water reservoirs have been tapped through deep wells. Desalination plants have been built to produce fresh water from the sea for urban and industrial use, thereby freeing other sources for agriculture. Facilities have also been put into place to treat urban and industrial run-off for agricultural irrigation. These efforts collectively have helped transform vast tracts of the desert into fertile farmland. Land under cultivation grew from under 400,000 acres in 1976 to millions of acres by the 1990s.

Under the current Seventh Development Plan (2000-2004), the Saudi Arabian agricultural sector is expected to diversify the production base through greater investment in large agricultural projects that use renewable resources and modern irrigation techniques for minimal water use. The plan continues the concern for protection of the environment from pollution and preservation of natural resources and wildlife. It will also encourage private investors to establish shareholding companies. Thus, the agricultural sector will meet an increasing percentage of the country's food needs, increase exports and continue to provide food for humanitarian assistance to other countries.

 

 

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Economy & Global Trade
Opportunities for economic growth have increased steadily over the decades since King Abdulaziz bin Abdelrahman Al-Saud founded the Kingdom in 1932.



Agricultural Achievements
The 1970s marked the beginning of serious agricultural development in the Kingdom.



Government Programs
The progress made by the Saudi Arabian agricultural sector in recent years has been largely due to an array of government programs, including the provision of soft, interest-free loans and technical and support services.


Banking
Commercial banking has undergone tremendous growth during the course of the country's development. There are now nine commercial banks, with branches all over the Kingdom.

Development Plans (7)
Commercial banking has undergone tremendous growth during the course of the country's development. There are now nine commercial banks, with branches all over the Kingdom.

Government Support
The government plays an essential role in industrial and economic development. The Ministry of Planning assists in formulating the five-year development plans that set long-term economic goals.

Industrial Cities
The Kingdom's policy for ensuring the growth of the non-oil industrial sector focuses on establishing industries that use the country's abundant and inexpensive supplies of petroleum products, petrochemicals and minerals.

Oil Industry
Saudi Arabia possesses a quarter of the world's proven oil reserves and is the largest exporter of oil.

Private Sector
The combination of loans, incentives, subsidies and information, and the government emphasis on strengthening the role of the private sector especially during the course of the Fifth and Sixth Development Plans (1990-94 and 1995-99), and now under the Seventh Plan (2000-04), have clearly had the desired result.

Water Resources
Water has always been a scarce and extremely valuable resource in Saudi Arabia.





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